Why the FBR share price has rocketed 64% higher this week

The FBR Ltd (ASX:FBR) share price is up 38.5% today and 64% so far this week. Here's why this tech share is rocketing higher…

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One of the best performers on the Australian share market on Wednesday has been the FBR Ltd (ASX: FBR) share price.

In afternoon trade the robotics company's shares are up a massive 38.5% to 11.5 cents.

This means that FBR, formerly known as Fastbrick Robotics, has seen its share price rise an astonishing 64% this week.

Why is the FBR share price rocketing higher this week?

With no major news out of the company or broker notes that I'm aware of, a blog post on its website on Tuesday explaining its path to commercialisation appears to have been the catalyst for the rampant buying.

The post explains that management is: "working to prepare the company to become a key service provider to the construction industry by offering Wall as a Service, or WaaS."

It made this decision after extensive research and discussions made it "clear that the fastest path to commercialisation for the Hadrian X technology was through a business model where we maintained control of our construction robots and their operation and maintenance."

The WaaS model means that construction companies or brick and block manufacturers don't have to add entirely new robotics divisions to their existing businesses. Nor do they need to train operators, invest significant capital upfront, or further complicate their core businesses.

Instead, FBR will offer a contract bricklaying service which it believes is the lower risk, higher value option when compared to collecting a small royalty from a single OEM.

What now?

While I think that this business model makes a lot of sense, I feel investors ought to wait and see how things progress over the next year or two before considering an investment.

In the meantime, I would suggest investors look at fellow small cap tech shares Citadel Group Ltd (ASX: CGL) and ELMO Software Ltd (ASX: ELO). Both these companies have solid growth prospects and could be well worth a closer look today.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ELMOSFTWRE FPO. The Motley Fool Australia has recommended ELMOSFTWRE FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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